Recently, Elon Musk has announced his plans to bring Tesla and Starlink to Indian Markets post meeting with the PM Narendra Modi in USA and just few days ago reports have came out that Tesla is actively discussing the potential establishment of its auto parts and electronics chain in India with officials from the Indian government which also involves seeking incentives and tax benefits, signalling a renewed interest from the US-based electric vehicle manufacturer in the Indian market. 

The company has also shared an ambitious plan of manufacturing 5 lac vehicles per year in its Indian manufacturing plant and launch its first car at price as low as Rs. 20 Lakh. India has been actively promoting the adoption of electric vehicles to reduce pollution and dependence on fossil fuels which attracted Tesla to Indian markets. The government has implemented various initiatives and incentives to attract investments in the electric vehicle sector and develop the necessary infrastructure.

India’s electric vehicle (EV) market grew 223% in 2022, adding around 48,000 EVs, according to market analyst firm Canalys. Key players in Indian EV car market includes include Hyundai Motor India, Tata Motors, Mahindra & Mahindra Ltd, Audi AG, BMW AG, MG Motor India Pvt. Ltd., and Olectra Greentech Limited. Tata leaded in EVs with 86% of the market share from just two models: the Nexon EV and Tigor EV. It was followed by MG’s ZS EV with 9% of the market share, and Hyundai’s Kona with 1.6% of the market share. Considering the price points of EV cars, the most successful EVs from Tata were under Rs. 20 lacs (highest variant) , which is the sweet spot among buyers wanting a second car for city commutes. Luxury brands like Audi, BMW and Mercedes-Benz sell globally popular EV models in India, but in small volumes. Mercedes-Benz and BMW posted record sales but represented less than 1% of the total market share. The EV market in India is projected to grow to over 300,000 units in 2025, with a compound annual growth rate (CAGR) of 59%.

Now, Ev market leader across the globe, Tesla is planning to launch its first car at starting price of 20 lakhs which is in line with Tata Nexon Ev and Mahindra XUV400’s high end variant and lower than other luxury EV cars such as BYD Atto 3, Kia EV6, Hyundai Ioniq 5, MG Zs Ev, Hyundai Kona etc. So, in upcoming years consumers might witness price fight amongst EV car markers to increase or maintain their market shares in the industry. Tesla offers many advance features such as 311 miles range, top speed of 149 mph and 0-60 mph in just 2.5 sec, all functionality of Basic Autopilot and Enhanced Autopilot, Traffic Light and Stop Sign Control and even All functionality of Basic Autopilot and Enhanced Autopilot Traffic Light and Stop Sign Control and even Auto Steer on City Streets but these features are available in only few cars in present and that too in higher end variants only. Well one thing is for sure that with entry of Tesla in India the adoption of Ev may ramp up due to intense competition amongst manufacturers.

Another company which Musk want to bring to India is Starlink which is a sat-com company which means it provides communication of all types using satellites. Some of the notable features offered by Starlink are as follows:

1. With Starlink users can engage in activities like Video calls, Streaming, Online Gaming and more using Starlink’s high-speed, low-latency service which is made possible by the company via the world’s largest constellation of highly advanced satellites operating in a low orbit around the Earth.
2. Starlink offers EASY SELF-INSTALL kit which means anyone can order their wifi router and antenna at their home and even install and start using it seamlessly without any help or need of technicians.
3. With Starlink’s Mobile plans one can take your high-speed, low-latency internet service with you wherever you go. It also offers the service like Pause and resume the plan based on your travel needs and stay connected in any location where Starlink is available.
4. Starlink also offers business plan under which users can expect download speeds of up to 220 Mbps, upload up to 25 Mbps, network priority and latency of 25-50 ms, enabling high throughput connectivity for offices of 20+ users, storefronts, and demanding workloads across the globe.
5. Starlink is ideal for rural and remote locations. One can Order as many Starlink kits as needed and manage all of them from a single centralized account.
6. Starlink’s Roam allows users to enjoy high-speed, low-latency internet while in motion through a wide field of view and enhanced GPS capabilities, the Flat High Performance Starlink can connect to more satellites, allowing for consistent connectivity on the go. One can install it permanently on their vehicle and travel across cities and even manage the workloads on the go.
7. Starlink also offers Global maritime coverage for boats of all sizes with up to 220 Mbps download while at sea. Not just that, In addition to withstanding extreme cold, heat, hail, sleet, heavy rain, and gale force winds, Starlink also holds up against rocket engines. It is currently being used to get high-quality video of SpaceX rocket landings at sea, providing continuous coverage in the face of engines capable of generating up to 190,000 lbs of force.
8. It also offers inflight internet through world's largest satellite constellation with coverage over land, the oceans and polar regions. Starlink can deliver up to 350 Mbps to each plane, enabling all passengers to access streaming-capable internet at the same time. With latency as low as 20 ms, passengers can engage in activities previously not functional in flight, including video calls, online gaming, virtual private networks and other high data rate activities.

To sum up, it can be said that Starlink can provide internet services to all types of industries and consumers.

The internet world with no wires and towers may be the next big thing in the Indian telecom industry. Some of the existing and upcoming Satellite broadband providers in India include Airtel, OneWeb, SpaceX technologies, and Hughes. US satellite maker Hughes Network Systems too is all set to invest in a $500 million satellite and pump in $300 million more on ground-level gear.

Now to counter the competition, India’s biggest telecom player Airtel has already taken steps to provide Satellite internet services in upcoming years through its partnership with UK based company One Web whose satellites were launched into space by ISRO in 2022. So, though competition is going to be tough amongst all these private players for providing Satellite Communication services in India in upcoming years Indian companies have already geared up to face the challenges and the consumer will be benefited through this competition!

Thus, from above discussion it can be said that with the entry of new foreign companies India will witness immense growth and even the increased competition amongst the market leaders will contribute to that growth in a positive way as all companies will work harder to increase their market leadership in respective segments which is more beneficiary to the India at the end.

HET ZAVERI​

info@smartinvestment.in

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